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"It will decrease the political tensions posed by scarce fossil reserves, and
accelerate the widespread adoption of renewable transportation fuels."

The company was set up by Dr Chris Somerville, director of the Carnegie
Institution and professor of plant biology at Stanford University, and Dr George
Church, director of the MIT-Harvard US Department of Energy GTL Center and
professor of genetics at Harvard.

"Thanks to rapid advances in industrial biotechnology and synthetic biology,
along with the strength and talent of our scientific team, LS9 is uniquely
suited to design, develop and commercialise the next generation of biofuels,"
said Professor Somerville.

Professor Church added: "We have looked to nature to identify the required
biological tools, redesigned them to function under industrial conditions and
optimised their performance to meet our economic objectives."

Naturally occurring E Coli produces fatty acids which are similar to crude
oil. The genetic modification required is relatively simple, and the new
organism produces crude oil which needs minimum refining.

The company claims that the final oil product, known as Oil 2.0, is actually
carbon negative, since the carbon it produces is less than was extracted from
the atmosphere by the growing medium.